Based on SMMT data, from a standing start in July 2008 to November 2009 Eco City Vehicles (ECV) has captured 18% of the national market share with its Mercedes Vito Taxi. The key to this investment story lies in ECV’s relationship with Mercedes. Short-term, management’s success depends on gaining further market share. Longer-term, it has the backing of Mercedes in its attempts to develop both hybrid and sole electric vehicles. We believe the potential for the Vito taxi is significant and likely to drive the share price in the short term. In London, the mayor’s recently announced environmental standards suggest that the normal 14-year replacement cycle for London taxis may be compressed. There are further upsides from regional and European sales of the Vito, starting with Germany.

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